Absolute-Freaking-YES, I look up the entity. 

Proof of funds - absolutely YES - current within 30 days. The name on the account must match the name on the contract.  No screenshot - the account could belong to Mickey Mouse, for all we know.

If an entity buyer, the representative capacity disclosure requires proof of the entity and supporting documents. 

Proper vetting gets results. I've not had a situation where the entity was not who I thought was dealing with. 

I've got no war stories for you on this one. 

I also vet all buyer agents - download their DRE license and retain it in my files. 

Since 1999, I have pretty much successfully done it this way:
I vet investor cash buyers by verifying proof of funds, looking up the REALTOR® representing them, and researching the purchasing entity when one is involved. I also have a ferocious counter offer that often scares off the ones planning to pull shenanigans. 😎 

In my experience in San Diego since we came out of the housing crash around 2012, many of today's cash buyers have actually been individuals—not institutional investors—including buyers completing 1031 exchanges, "snowbirds" and parents helping kids / using some of their retirement funds, like 401K's.

Investors also often have a harder time competing with principal-residence buyers here. An investor has to protect a specific return and bottom line, while an owner-occupant planning to live in the home for five, ten, or more years may be willing to pay more for the right property. That difference in motivation can matter considerably in a competitive market. I'm seeing less investors and more parents helping their kids with cash or as I mentioned before - second home buyers (snowbirds) with cash  and 1031 Exchanges. 

Most companies don't list in the BBB, in my experience.  For cash buyers, it's only the few big name ones that advertise on TV/billboards/buss benches/etc. that are registered with the state.  Most are smaller operations and all registration with the state means is that they formed a company and may pay some taxes.

What actually matters is the ability to complete the purchase, the cash in the bank.  That's what gets vetted on my cash buyers (I represent cash buyers).  Most Realtors and sellers don't know how to look up a company on the Secretary of State's site anyway.

 Show me the proof of funds... and give me the name of a human being who can verify that POF, not just a printed financial disclosure or some document that could be faked.

And if it's a company or corporation?  Same story.  Give me a person I can talk to, to verify that it is for real.  It is far too easy to set up a dummy corporation, trust, LLC or other entity when there is no money behind it.

  Also, WHO is the Agent or Broker that brought me this offer?   It's easy to verify them with the DBPR in Florida, and if they are from out of state, a little effort can quickly reveal who they are. 

  My favorite Title law firm can tell me if this alleged Corporation has taken ownership of any real estate in my county or State.

   Vet, vet, then vet again!

Most buyers here are cash purchases (approx. 60-65%). Since all sales here are completed with lawyers, our responsibility in this area is limited. It's standard practice here to require the top page of a bank statement as proof of funds (screenshots are not considered proof of funds). I will review the proof of funds statement for legitimacy (It's worth noting I headed the America's Compliance Training for a large global investment bank-which included Anti-Money Laundering training).

We don't have much in the way of iBuyer or local we buy houses company presence (if any- their presence is really outside of Manhattan), but we do have investors. It's also worth mentioning that in Manhattan the majority of deals have a good faith deposit of 10%- and in combination of deals completed by attorney's eliminates at least some of the bad faith players out there. 

I have never been in a situation like the one you describe Steven Hoeke BUT I remember when we had a flood and there were many "I pay cash" advertisements out there. Although there were warning I did not ever hear of one going bad.

I have no experience with iBuyers. It seems to me that an iBuyer wanting to buy a property that I have listed at a reasonable and competitive price is not apt to pay an attractive price. 

In any event, I insist on proof of funds adequate to cover the EMD, downpayment and closing costs.

Due diligence is important in real estate and takes many forms.  Ditto everyday life.

Steven Hoeke, I did all that checking and still got scammed. Maybe enough time has passed that I might be telling this story soon on the Rain

Steven,

Meat & potatoes here...good question. I am reminded in every single circumstance in the business worlds: Can you perform? Decades ago, we trusted & even let properties be tied up in escrows without confirmations. TRUE STORY: When Marcos escaped from the Philippines, he looted the countries treasury for 5 billion. I was contacted by a woman who wanted to buy all my listings & even listings from others if I could arrange. I typed up all paperwork, got it signed, & then: how do I know you can perform? She gives me a private number to a bank in Canada who wanted to know how I got this number & eventually confirmed that this buyer had billions & could perform or close on hundreds of millions of properties. There was even a well-known movie star involved with this buyer making it all believable. I pressed hard for CASH to hold properties. Everything stalled after that, why who knows or cares? Can you perform? Show me the money!

Good morning, Steven... it's all about vetting. I would actually ask one my attorneys to do the entity search. I would also insist on a proof of funds and a conversation with the originator of that proof of funds. 

We vet them and make sure they are clear to close with proof of funds.

BBB is a joke, and most who brag about being members are a bit sketchy.

When an investor or an iBuyer or a local we buy houses company puts a contract in front of your seller, do you look the entity up?

Yep! ANY client in my world, I'm going to look them up and see what their deal is so we know what to anticipate. 
1000% proof of funds as a subject-to full acceptance. I want to see the same name on the account as our buyer and a screenshot may or may not be OK. 

LOL one of my clients who is a venture capitalist said oh you want proof of funds? Whips out his phone, taps a couple of keys and the bank shows his balance right then and there in an amount well exceeding the property's asking price. Good enough! Now text me that capture for the seller and my file!
I have not yet dealt with an IBuyer . . . and have not yet experienced the entity not matching the buyer's name/DBA.

For sure, always need to check this, it is so important.  To many scammers out there the last few years.

I only had one investor, and he always gave me proof of funds, and sold him several homes.  I knew he was good, but did always call the bank to ensure proof of funds.

I always ask for "proof of fund", so if it's a "we buy homes for cash" company, we're going to insist on the same.